DataQuest LLC 3/28/2019 - Laserfiche WebLink

C.Users Must Notify Consumers When Adverse Actions Are Taken The term "adverse action"is defined very broadly by Section 603. "Adverse actions" include all business, credit, and employment actions affecting consumers that can be considered to have a negative impact as defined by Section 603(k) of the FCRA—such as denying or canceling credit or insurance,or denying employment or promotion. No adverse action occurs in a credit transaction where the creditor makes a counteroffer that is accepted by the consumer. 1.Adverse Actions Based on Information Obtained From a CRA If a user takes any type of adverse action as defined by the FCRA that is based at least in part on information contained in a consumer report,Section 615(a)requires the user to notify the consumer. The notification may be done in writing,orally,or by electronic means. It must include the following: •The name,address,and telephone number of the CRA(including a toll-free telephone number,if it is a nationwide CRA)that provided the report. •A statement that the CRA did not make the adverse decision and is not able to explain why the decision was made. •A statement setting forth the consumer's right to obtain a free disclosure of the consumer's file from the CRA if the consumer makes a request within 60 days. • A statement setting forth the consumer's right to dispute directly with the CRA the accuracy or completeness of any information provided by the CRA. 2.Adverse Actions Based on Information Obtained From Third Parties Who Are Not Consumer Reporting Agencies If a person denies(or increases the charge for)credit for personal,family,or household purposes based either wholly or partly upon information from a person other than a CRA, and the information is the type of consumer information covered by the FCRA,Section 615(b)(1)requires that the user clearly and accurately disclose to the consumer his or her right to be told the nature of the information that was relied upon if the consumer makes a written request within 60 days of notification. The user must provide the disclosure within a reasonable period of time following the consumer's written request. 3.Adverse Actions Based on Information Obtained From Affiliates If a person takes an adverse action involving insurance,employment,or a credit transaction initiated by the consumer,based on information of the type covered by the FCRA,and this information was obtained from an entity affiliated with the user of the information by common ownership or control,Section 615(b)(2) requires the user to notify the consumer of the adverse action. The notice must inform the consumer that he or she may obtain a disclosure of the nature of the information relied upon by making a written request within 60 days of receiving the adverse action notice. If the consumer makes such a request,the user must disclose the nature of the information not later than 30 days after receiving the request. If consumer report information is shared among affiliates and then used for an adverse action,the user must make an adverse action disclosure as set forth in I.C.1 above. D.Users Have Obligations When Fraud and Active Duty Military Alerts are in Files When a consumer has placed a fraud alert, including one relating to identify theft,or an active duty military alert with a nationwide consumer reporting agency as defined in Section 603(p)and resellers,Section 605A(h)imposes limitations on users of reports obtained from the consumer reporting agency in certain circumstances, including the establishment of a new credit plan and the issuance of additional credit cards. For initial fraud alerts and active duty alerts,the user must have reasonable policies and procedures in place to form a belief that the user knows the identity of the applicant or contact the consumer at a telephone number specified by the consumer; in the case of extended fraud alerts, the user must contact the consumer in accordance with the contact information provided in the consumer's alert. E.Users Have Obligations When Notified of an Address Discrepancy Section 605(h) requires nationwide CRAs, as defined in Section 603(p), to notify users that request reports when the address for a consumer provided by the user in requesting the report is substantially different from the addresses in the consumer's file. When this occurs, users must comply with regulations specifying the procedures to be followed. Federal regulations are available at www.cons umerfinance.go v/l earnmore. F.Users Have Obligations When Disposing of Records Section 628 requires that all users of consumer report information have in place procedures to properly dispose of records containing this information. Federal regulations have been issued that cover disposal. DataQuest CSA_Rev:20180524-2{CAS 1655106.DOCX;2/11336.020002/} Page 11 of 14